Setting up a company in Cyprus is one of the most common moves for EU entrepreneurs looking to reduce their tax burden. But most guides online focus on the benefits without giving you the actual costs. This article does the opposite.
Here is what you will actually pay to set up and run a Cyprus Limited company in 2026.
One-Time Setup Costs
| Item | Cost (EUR) |
|---|---|
| Company registration (Registrar of Companies) | 105 |
| Stamp duty on share capital | 0 (if under 5,000 EUR share capital) |
| Registered address (first year) | 300–600 |
| Local director or corporate secretary (one-time setup) | 500–1,000 |
| Bank account opening assistance | 0–500 |
| Legal/formation fees (law firm or formation agent) | 800–1,500 |
| Total one-time | ~1,700–3,700 EUR |
Most formation agents bundle these into packages advertised between 1,500 and 2,500 EUR. That is a reasonable range for a complete, ready-to-operate company.
For a full breakdown of the process, see the Cyprus company formation guide.
Annual Running Costs
This is where most guides go quiet. Setup is cheap. Ongoing compliance is where the costs live.
| Item | Annual Cost (EUR) |
|---|---|
| Registered address | 300–600 |
| Local director/secretary (if needed) | 1,200–3,600 |
| Accounting and bookkeeping | 1,200–3,000 |
| Annual audit (mandatory for all Cyprus Ltd companies) | 1,500–4,000 |
| Tax return filing | 500–1,000 |
| Annual levy (Registrar of Companies) | 350 |
| Total annual | ~5,050–12,550 EUR |
The single biggest variable is the audit. All Cyprus limited companies are legally required to have their accounts audited annually by a registered auditor. This cannot be avoided. For a small company with simple finances, expect 1,500–2,500 EUR. For more complex operations, 3,000–4,000 EUR is common.
The Key Number: Break-Even Point
With annual overhead of roughly 6,000–8,000 EUR (mid-range estimate), the tax savings need to exceed that to make sense.
At a 15% corporate tax rate in Cyprus vs typical European alternatives:
- If you are currently paying 30% on net profits of 80,000 EUR, you are paying 24,000 EUR in tax
- Cyprus at 15% = 12,000 EUR
- Saving: 12,000 EUR/year
- Net saving after Cyprus running costs (~7,000 EUR): ~5,000 EUR/year
At 150,000 EUR net profit:
- Current 30% tax: 45,000 EUR
- Cyprus 15%: 22,500 EUR
- Saving: 22,500 EUR
- Net saving after running costs: ~15,500 EUR/year
The math gets significantly better at higher profit levels. Below 50,000 EUR net profit, the overhead can eat most of the tax savings.
Non-Dom Status: The Additional Layer
If you are a Cyprus tax resident under Non-Dom status, dividends distributed from your Cyprus company are subject to only 2.65% GHS (health contribution), not personal income tax. This brings the effective combined rate to approximately 5%.
This is on top of the 15% corporate tax reduction. The combined structure is what makes Cyprus competitive against most European alternatives.
What the Setup Process Looks Like
- Choose a company name — checked against the Registrar of Companies database (takes 3–5 days for approval)
- Prepare articles of association — standard template available, customised by your lawyer
- Register with the Registrar of Companies — takes 7–10 working days
- Open a Cyprus bank account — the most time-consuming step; major banks (Bank of Cyprus, Hellenic Bank) require due diligence; fintech alternatives (Revolut Business, Wise Business) are faster
- Register for VAT — mandatory if turnover exceeds 15,600 EUR/year; optional below that
- Register for corporate tax (TIC number) — done through the Tax Department
Total timeline from start to operational: 4–8 weeks, depending on the bank.
Hidden Costs to Watch For
- Nominee director fees: Some formations include a nominee director for privacy or substance reasons. Annual fees can add 2,000–5,000 EUR
- Substance requirements: If your company needs to demonstrate genuine Cyprus management (for treaty benefits), you may need regular local board meetings, a local manager, or physical office space
- VAT registration and filing: If you register for VAT, expect quarterly filing costs added to your accounting bill
- Bank account maintenance: Some Cyprus banks charge maintenance fees of 50–200 EUR/month for business accounts
Bottom Line
A Cyprus Limited company costs approximately 1,700–3,700 EUR to set up and 5,000–12,000 EUR per year to maintain. The tax savings become meaningful from around 60,000–80,000 EUR net profit upward, and substantial above 150,000 EUR.
The real cost nobody publishes is the annual audit. Budget for it. It is not optional.
If you want to understand the full tax picture before committing, start with the Cyprus tax overview.
This article is for informational purposes only and does not constitute tax or legal advice. Consult a qualified Cyprus tax advisor and legal professional before making any decisions.
The author runs Cyprus Tax Life, a resource for EU entrepreneurs and expats navigating taxes and residency in Cyprus.
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